Ally and Fatty are in partnership named AF Ent. Profit sharing ratio is based on their contributed capital. Ally and Fatty contributed capital of RM80,000 and RM50,000 respectively.For the year ended 31 December 2019, AF Ent. managed to generate profit of RM20,800.Interest on capital and drawings is 10% and 5% per annum respectively based on their agreement. Ally is also entitled to receive a salary of RM 400 per month.Additional info: Ally withdrew RM5,000 while Fatty withdrew RM 4,000.Required: Prepare profit and loss appropriation for AF Enterprise (the Partnership firm).

The Profit and loss appropriation account is prepared to appropriate the various expenses related to…

Answered: Ally and Fatty are in partnership named…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter15: Partnership Accounting

Section: Chapter Questions

Problem 2PA: Arun and Margot want to admit Tammy as a third partner for their partnership. Their capital balances...

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Ally and Fatty are in partnership named AF Ent. Profit sharing ratio is based on their contributed capital. Ally and Fatty contributed capital of RM80,000 and RM50,000 respectively.
For the year ended 31 December 2019, AF Ent. managed to generate profit of RM20,800.
Interest on capital and drawings is 10% and 5% per annum respectively based on their agreement. Ally is also entitled to receive a salary of RM 400 per month.
Additional info: Ally withdrew RM5,000 while Fatty withdrew RM 4,000.

Required: Prepare profit and loss appropriation for AF Enterprise (the Partnership firm).

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